893.51/5291: Telegram
The Minister in China (Johnson) to the Secretary of State
480. Legation’s 473, June 20, 4 p.m. Following telegram is being sent to the Minister at Nanking:
“Following are pertinent portions of a letter from the American Consul General at Tientsin June 20 reporting closing of Tientsin customs:
‘American merchants and shipping agents raise the question of the entry and clearance of ships and cargo.
I request the instructions of the Legation in the matter.
A. As to ships. Comments [An American] cargo steamer is due at Taku Bar on Monday59 next to discharge and load cargo. If meanwhile no customs is established and functioning with the recognition of the territorial authorities, I am of the opinion that the ship should be permitted to enter and clear in the usual way at the Consulate General and, so long as no claims against the ship for tonnage dues or customs duties are made to the Consulate General by any functioning customs authorities, no restriction should be placed on the vessel entering and clearing and discharging or loading cargo.
In my opinion the port of Tientsin being a treaty port opened to trade, it cannot be closed to trade by the withdrawal of the national customs. If the [Page 243] customs close and cease to function, the port becomes to all intents and purposes a free port. There is no obligation on the part of the foreign consular officers [officer] to collect or to require security for the payment of any tonnage dues or duties which might otherwise be payable by the ship or by shippers of the cargo she carries. The consular officers [officer] can have cognizance only of claims for duties and dues made by a functioning customs authority. Practically all shipping companies are under annual guarantees of the customs for the payment of all duty [dues] and duties on ships and cargo. These guarantees may be enforced directly against the shipping companies and should be no concern of the foreign consuls. Assume no reason, therefore, why I should demand of any ship before delivery of its papers any security or guarantee for the payment of any dues or duties ordinarily payable to the customhouse authorities.
My Japanese colleague informs me that he is clearing Japanese ships, but is requiring that the shipper give to the Japanese Consulate General a letter of guarantee from his Consul or a cash deposit sufficient to cover any claim to duty on the cargo.
Shippers by British vessels inform me that the British shipping companies have been advised or instructed by their Consul General to require a letter of guarantee from the foreign consular authorities, [authority of the] nationality of the shipper covering the duties payable on the cargo before accepting it for shipment. Request has been made of me for such a letter of guarantee in one case and the offer made to deposit with the Consulate General the amount of duty estimated to be involved.
I have declined to issue any consular letter of guarantee, with or without the deposit of the duty or any estimated duty at this Consulate General. I have informed the shipper that if he wishes to make his shipment by British vessel, he might offer the British shipping company a deposit to cover the duties or estimated duties, but that no letter of guarantee would be issued by this office to the British shipping companies [company] or to the British Consul General.
With reference to American shipping companies, I propose, if inquiry is made, to suggest that they may wish to consider requiring any proper guarantees or deposits directly from shippers to protect them under their annual guarantee to the Chinese Maritime Customs against any claim for duty on cargo shipped or discharged. I would not be inclined to suggest that a letter of guarantee from a foreign consul would be sufficient protection if any protection is desired.
I request to be instructed whether this attitude is approved.
[B.] If, as is probable within a few days, the customs at Tientsin is reopened by the Shansi faction, the question will arise as to whether ships and cargo should be subject to dues and duties imposed by such customs.
I am of the opinion that ships and cargo are subject to the payment of dues and duties to such de facto customs authorities.
I request the Legation’s instructions on this point.’
My comments will follow.”